RISK MANAGEMENT

Submitted to
Prof. Dr. Peter Mattheis
By
Shivam Singh Chaudhary

Business Consulting Master

V0-2015
Agenda
• Introduction
• Definition
• Significance
• Process
• Conclusions
• References

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WHAT IS A RISK?

• A probability or threat of damage, injury, loss, or any other negative

occurrence that is caused by external or internal vulnerabilities, and that
may be avoided through preemptive action.

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 RISK MANAGEMENT

• Risk management is the continuing process

to identify, analyze, evaluate, and treat loss
exposures and monitor risk control and
financial resources to mitigate the adverse
effects of loss.
•  Risk management also refers to the architecture
that is used to manage risk. This architecture
includes risk management principles, and a
risk management process.
 SIGNIFICANCE
• The purpose of Risk Management to identify potential problems before
they occur so that risk-handling activities can be planned and invoked.
• The purpose of risk management is to:
• Identify possible risks.
• Reduce or allocate risks.
• Provide a rational basis for better decision making in regards to all risks.
RISK SOURCES
 RISK MANAGEMENT PROCESS

• Defining a Risk management Strategy

• Identifying Risks
• Analyzing risks.
• Handling the identified risks.
• Risk Treatment.
 RISK IDENTIFICATION

• Cost
• Legal
• Team Members
• Technical
• Schedule
• Financial
• Environmental
 RISK ANALYSIS

• There is an old adage that says, “If you can’t

measure risk, you can’t manage it.

• Measurement methodologies may be simple

and basic, e.g., risk rating or scoring, claims
exposure and cost analysis, sensitivity analysis,
stress testing and tracking key variables relating
to an identified exposure.
RISK EVALUATION

• Risk evaluation attempts to define what the estimated risk actually

means to people concerned with or affected by the risk.

• Risk evaluation is concerned with assessing probability and impact

of individual risks.

• Some risks, such as financial risk, can be evaluated in numerical

terms.

• It also calculate risk level .

RISK TREATMENT
References

• http://www.marquette.edu/riskunit/riskmanagement/whatis.shtml
• https://www.google.de/search?q=what+is+risk+picture&biw=1366&bih=643&tbm=is
ch&tbo=u&source=univ&sa=X&ei=BPYqVamGFsvPaKrLgegO&ved=0CCAQsAQ

• https://www.bia.ca/articles/rm-risk-management.htm
• https://www.google.de/search?q=risk+analysis&biw=1366&bih=643&tbm=isch&tbo
=u&source=univ&sa=X&ei=L_0qVe_5D8_xaovugNAK&sqi=2&ved=0CDEQsAQ#tb
m=isch&q=risk+analysis+process

• https://www.bia.ca/associate-michael-stanleigh2.htm
• http://www.businessdictionary.com/definition/risk.html
• http://www.ruleworks.co.uk/riskguide/risk-evaluation.htm
• https://www.business.qld.gov.au/business/running/risk-management/risk-managem
ent-plan-business-impact-analysis/analyse-evaluate-impact-risks

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